What You Should Know About the Employee Retention Tax Credit

If the Employee Retention Tax Credit (ERTC) has been on your mind lately, you're not alone. Many companies are looking for guidance on how to unlock the ERTC to offset business losses.

The following chart shows how the ERTC has evolved, from how the ERTC functioned in 2020 under the Consolidated Appropriations Act (CAA), to how the ERTC functioned in 2021 (Q1 & Q2) under the CAA, to how the ERTC currently functions in 2021 (Q3 & Q4) under the American Rescue Plan Act*.

Expanded Employee Retention Tax CreditDOWNLOAD PDF: ERTC Graph


Beginning in the third quarter of 2021, the following modifications apply to the ERTC:

Kruggel Lawton CPAs have experienced accounting professionals standing by to help you through this process. We are open to address all of your questions related to PPP and ERC. Contact us if you have more questions.

Addition resources:

How to Unlock the Employer Retention Credit for Your Business or Nonprofit

FAQs: Employee Retention Tax Credit under the CARES Act


*The American Rescue Plan Act is a continuation of the 2021 CAA.

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